Drive Shack (DS.US), the US company offering golf-related entertainment services, is one of the best performing stocks on Wall Street today. Company announced that its golf club in Orlando, Florida will be reopened on Friday. The decision comes after Drive Shack saw a surge in demand for its services following reopening of other golf venues. Company says that restrictive and precautionary measures will be in place, including capacity limits as well as some restrictions to on-premise dining services. The move may help soften blow from the coronavirus pandemic after the company generated a combined net loss of $71.5 million on $159.7 million of revenue in the Q1-Q3 2020 period.
News triggered a big price jump that comes amid massive volume. Over 7.7 million shares were traded during the first two and a half hours of trade compared to the 15-day average volume of 2.2 million (average for full trading day). Share price jumped above the post-pandemic peak at around $3 but bulls failed to hold onto these gains and price pulled back from daily highs. Shares trade near 61.8% retracement of a drop started in mid-January 2020 ($2.90). A point to note is that the 50-session moving average (green line) has broken above the 200-session moving average (purple line) forming a "golden cross" pattern (orange circle on the chart below). In theory, this pattern often heralds upward move but is also a subject to a lag so this signal should be treated with caution.
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Source: xStation5
